Bay of Plenty Energy Limited v Electricity Authority

The appeals were from the decision of the Electricity Authority, made under section 64 of the Electricity Industry Act 2010, that an undesirable trading situation (UTS) had arisen on 26 March 2011. The Authority had determined that the high interim prices for electricity on that day were to be reduced to $3,000/MWh for the seven hours between 10.30 a.m. and 5.30 p.m. The appellants challenged the Authority's decision on the basis that it was based on errors of law and that the Authority had reached a conclusion which was untenable and not properly available on the facts found. The appeals were dismissed by the Court. The Authority's interpretation of the definition of a UTS was correct. It had correctly identified the circumstances that arose on 26 March 2011 as giving rise to a UTS. The Authority's analysis of the law was correct and the conclusion reached was properly available on the facts found. The Authority's decision to reduce the prices of electricity on 26 March 2011 was also a permissible option. It was not an error of law for the Authority to reduce the prices to $3,000/MWh.